JetBlue will receive over $10 million a year from the federal government to operate its newest route. On Thursday, the airline launched a new service between Boston and Presque Isle, Maine.
In June, JetBlue was selected by the U.S. Department of Transportation (DOT) to serve the town of nearly 9,000 residents. The carrier’s proposal was chosen over United, which was the incumbent airline for six years.
United contested the DOT’s selection, calling it “arbitrary and capricious, and not well-reasoned” in a letter to the agency. The crux of the dispute lies in differing service levels.
With its proposal offering 12 weekly round-trip flights between Presque Isle and Newark, United says it more closely adhered to the initial criteria set forth by the DOT. JetBlue, on the other hand, secured a waiver to operate with just one daily flight from its Boston hub.
“We are happy to bring the long-desired Boston flights back to Presque Isle and the surrounding communities,” said Dave Jehn, vice president of network planning and airline partnerships at JetBlue, in a press release. “This new service exemplifies our commitment to providing customers throughout New England with high quality service to the places they most want to go. We are grateful to the U.S. Department of Transportation for selecting JetBlue for this Essential Air Service route.”
For the contract’s first year, the annual subsidy rate will be $10,412,703 with service being offered onboard JetBlue’s 100-seat Embraer E190. Service for the second year will increase to $11,235,581 onboard the 140-seat Airbus A220.
This hefty subsidy makes Presque Isle one of the most expensive EAS contracts in the lower 48 states. Notably, the community is also among the most isolated in the government programs at nearly 160 miles from Bangor, Maine. In addition to being the airline’s first EAS contract, it is currently the only one in JetBlue’s network.
